Stars and Stripes stripes.com 03 Jan, 2021 21:00 am

Minority-owned companies waited months for virus relief loans, research shows

Minority-owned companies waited months for virus relief loans, research shows
Thousands of minority-owned small businesses were at the end of the line in the government's coronavirus relief program as many struggled to find banks that would accept their applications or were disadvantaged by the terms of the program.

Loan data analyzed according to ZIP codes found that in that first round of funding, six loans were approved for every 1,000 people living in the 20% of ZIP codes with the greatest proportions of white residents, nearly twice the rate of loans approved for people living in the 20% of ZIP codes with the smallest proportions of whites.Over the entire course of the program, the number of loans approved grew and evened out at 14 loans per 1,000 residents in the most ZIP codes with the most and fewest number of white-owned businesses.Congress has approved a third, $284 billion round of PPP loans.The AP and other news organizations successfully sued under the Freedom of Information Act to make data on all PPP loans public, leading to the latest release.

6% of firms in Wayne County, Michigan, where Detroit is located, received PPP loans, compared to nearly 18% of companies nationwide.MBE Capital, a lender focusing on minority-owned companies, received a commitment in mid-May from NBA Hall of Fame member Magic Johnson for funding for $100 million in PPP loans.

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